Derivative instruments - Step by step - M3 - The world of swaps: IRS, CRS, CCIRS, performance swaps, inflation swaps, volatility swaps…
Whoever watched "The wolf of Wall Street" has struggled to understand the jobs, products, jargon that surround the financial markets. Some of us are still trying to get their way out of this financial jungle and clarify the associated strategies. Demystifying financial instruments is the key objective of the step by step programme we propose below. Our modular approach allows each participant to select his/her entry point in the programme to best fit cumulated knowledge and experience on this wide topic.
By the end of this course, participants will be able to:
- Define the general characteristics of each instrument
- Gain in-depth understanding of how the instrument operates
- List how it can best be used on the market – be it in single or in combination
- with other instruments
- Understand the valuation method and what can impact the value of it
- Identify major risks associated and determine controls that may mitigate them
- The fundamentals of an IRS swap contract: asset or liability swap, main contract features
- Main swap uses; unwinding of a swap; swap risks
- The swap market and yield curve
- The case of a CRS
- Swaps variants: CMS swaps, 0-coupon swap
- Other types of swaps: volatility or variance swaps, inflation swaps, commodity swaps, performance swaps, dividend swaps
The content of the session is illustrated by many real, market examples. It is given in an attractive, understandable way, avoiding mathematical developments (grouped into a final "pricing" session).
A qui s'adresse la formation?
Anyone who wants to reach a sound understanding of the financial instruments (including derivative) used by investment managers.